Bank of Canada holds interest rates

The Bank of Canada has kept its key interest rate at 0.5 per cent.

Governor Stephen Poloz's decision comes against a backdrop of low oil prices, a tumbling Canadian dollar and grim prospects for economic growth.

There were some expectations that Poloz would cut the rate given the poor economic forecasts.

Poloz dropped the rate twice last year to help absorb the impact of sliding oil prices, but crude has since fallen even further, hovering below US$30 a barrel in recent days.